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managing assets from family & friends

  • #21
  • Aug 20, 2009 1:17pm Aug 20, 2009 1:17pm
Quoting The Fool
Thanks, Blacksun. Is it more or less understood, or even explicit, that when one opens an inst. account, then one is open to trading with the Bank's funds for the Bank's clients at some point? Or is that a proposition that arises after one has been in the inst. account for a while....?

it depends on the bank/broker. a quick thing to note, you dont need to be an institutional type trader to manage people's funds. for example, interbank FX recruits regular retail traders to be CTA's for them. i knew a guy who managed accounts for IBFX and his total amount of traded funds was only 47K.

if you do want to reach for higher money, you can negotiate deals with the banks. i know that some people (like peregrin financial or currenex) will recruit people as IB's or CTA's. you would have to contact the bank/broker to find out for sure, but they are out there.

now, another quick thing to note. in order to trade more than fifteen clients' accounts, you have to register as a COmmodity Trading Advisor (CTA) with the NFA. this is called the series 3 test. it's pretty simple, and you can find plenty of information about it on the web. i suggest looking at the NFA website.

most banks are going to require you to be a CTA if you are going to get referrals from them, or trade their clients accounts as you mentioned. you can, however, bring in up to 15 of your own clients, and not have to register, as long as their total funds dont excede 500K or so. im not to quite sure on that number, however. it's been a while since i took the test. you'll have to check up on all these facts dude. things might have changed in the past two years.

i hope this all helps.
  • #22
  • Aug 20, 2009 2:10pm Aug 20, 2009 2:10pm
Quoting blacksun1

i hope this all helps.
Sure does, thanks much.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #23
  • Aug 20, 2009 2:23pm Aug 20, 2009 2:23pm
Quoting kristdm
Avoid managing assets for family and friends. Take your series 3, get your CTA license and get an institutional account. If you really believe in your strategy then you should put a good fraction of your wealth in there. If you demonstrate good, stable performance after a few months, the prime broker will deposit a nice starting sum as a trial amount. If you grow that money in the same way they'll deposit more from their CPOs and Fund of fund investors. If you have enough $ to seed your account and you can continue your performance then you have...

great suggestion above, also if you still wanna trade for your friends and family make sure you routinely withdraw from your account accordingly and trade mini accounts! I dont care if you have 100,000 in your account. you need room to move with with handling so many clients with low funding. good luck and make sure these peole are not giving you their next month's rent money. you dont want someone calling you all day long for their returns lol. good luck happy trading.
  • #24
  • Aug 21, 2009 10:24am Aug 21, 2009 10:24am
Quoting kristdm
Just another idea that popped into my head: you could start an account with a service such as Collective2
Here is another site like www.collective2.com - http://www.myfxbook.com. It allows you to upload your Oanda or Metatrader trading results.
  • #25
  • Aug 28, 2009 6:58pm Aug 28, 2009 6:58pm
Quoting StephanusR
Here is another site like www.collective2.com - http://www.myfxbook.com. It allows you to upload your Oanda or Metatrader trading results.
I found myfxbook very interesting,

http://www.myfxbook.com/members/warnsoft/warnsoft/462

warnsoft rox
  • #26
  • Aug 19, 2010 1:29am Aug 19, 2010 1:29am
I have the same subject in my mind. And my thinking goes like this: If i do need the financial backing of other people in order to survive, i am not trading good enough, and therefore should not wast theyre money.

If on the other hand i am trading good, making my steady pips, there is no need for there money since i am doing fine.

So really, no you shouldnt trade with other peoples money generally.

But specifically if someone wants you to use theyre money, you should give them absolutely no guarantee whatsoever, it is the only sane way of going about this. Since the market does not guarantee anything, why should you? When people ask me about this i answer something like this: I will give you the same guarantees as the market gives me, none whatsoever, because thats the harsh reality out there that i have to deal with every single day.

Of course if you DO use someone elses money without guarantees you should trade it as carefully as if it was the last money you ever owned.



Another thing i remembered is about a trader who was asked to use large lot sizes by clients. After a while he did, and lost a lot. Of course clients got upset and blame the trader. From this i learned that you shouldnt talk lot sizes with youre clients, you should talk revenues, you should guarantee them anything, becase really, you cant, if you are guaranteeing something to them you are infact a liar.
My signature is: "Classified".
  • #27
  • Edited 7:48am Aug 19, 2010 1:54am | Edited 7:48am
Quoting NewstraderFX
Never do business with family or friends. Ever.
NEVER.

EVER.

NewstraderFX has stated all that needs to be said about the matter - certainly from my experience.

Ask me how I know... And know... And know....
  • #28
  • Jan 18, 2011 1:08pm Jan 18, 2011 1:08pm
Quoting StephanusR
Here is another site like www.collective2.com - http://www.myfxbook.com. It allows you to upload your Oanda or Metatrader trading results.
They are all relatively the same but I prefer FXSTAT. It has more info and is more user friendly
  • #29
  • Jan 20, 2011 4:28am Jan 20, 2011 4:28am
Quoting paradise103
They are all relatively the same but I prefer FXSTAT. It has more info and is more user friendly
If i find a nice EA on FXSTAT can i trade with it somehow?
  • #30
  • Last Post: Oct 14, 2011 8:28am Oct 14, 2011 8:28am
Quoting nadpk
If i find a nice EA on FXSTAT can i trade with it somehow?
FxStat does offer real time trade following and autotrading.

You can select the best currencies traded by the available signal providers who trade on their own real accounts and follow them in real time.

You can also set your own parameters such as Risk, money management, Strategy, max slippage etc. There are around 9 different parameters which you can set.
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